Leerink Partners raises Edwards Lifesciences stock price target on share buyback

Published 20/08/2025, 12:14
Leerink Partners raises Edwards Lifesciences stock price target on share buyback

Investing.com - Edwards Lifesciences (NYSE:EW), a $46 billion medical device maker with strong financial health according to InvestingPro metrics, received a price target increase from Leerink Partners to $85.00 from $84.00 on Wednesday, with the research firm maintaining its Market Perform rating on the stock. The company currently trades near its 52-week high of $83.00.

The price target adjustment follows Edwards Lifesciences’ announcement of a $500 million accelerated share repurchase program (ASR), bringing the company’s year-to-date repurchases to more than $800 million. This aligns with one of several InvestingPro Tips highlighting management’s aggressive share buyback strategy, with 11 more exclusive insights available for subscribers.

The medical device maker’s remaining share repurchase authorization now stands at approximately $600 million, down from about $1 billion at the end of the second quarter of 2025.

Leerink Partners estimates that Edwards Lifesciences’ diluted shares will come in at the lower end of management’s 585-590 million guidance for 2025 as a result of the buyback activity.

While the research firm’s 2025 adjusted earnings per share estimate remains unchanged at $2.48, its projections for 2026-2028 increased by approximately $0.02, with the new price target based on a price-to-earnings multiple of 30.0x applied to the 2026 adjusted EPS estimate of $2.82.

In other recent news, Edwards Lifesciences announced a $500 million accelerated share repurchase agreement, aiming to buy back a significant portion of its common stock using existing cash reserves. The company will initially acquire approximately 5 million shares, with the final count to be determined later. Moody’s Ratings has affirmed Edwards Lifesciences’ Baa2 rating and revised its outlook to positive, citing the company’s strong position in medical devices for structural heart diseases and new growth opportunities in transcatheter mitral and tricuspid therapies. BTIG upgraded Edwards Lifesciences to Buy, highlighting stability in the Transcatheter Aortic Valve Replacement (TAVR) segment, which is projected to grow by 6-7% in 2025. Bernstein and UBS both raised their price targets for the company to $85, following strong quarterly performance that exceeded expectations. Edwards Lifesciences reported a 10.6% organic growth in the second quarter, surpassing consensus estimates by 3%. The TAVR and Transcatheter Mitral and Tricuspid Therapies (TMTT) segments showed particularly strong results, exceeding estimates by approximately 3% and 3.5%, respectively.

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